Chea Romine :If you are not paying interest there is nothing to deduct on your tax return. You would still be able to deduct the real estate taxes, but nothing in the way of mortgage interest. So simple answer is nothing to report.

Customer:

so even though they paid cash out of their bank account and its not a gift i am paying a payment each month i dont have to report it..a friend said a grandparent bought a new car for grandchild as a GIFT and they got in problem with irs

Chea Romine :Different story if it was a gift. If you are paying the money back it is just an interest free loan and nothing to report.

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. OrvilleHesperia, California

CPA, Managing Partner of medium sized CPA firm specializing in all areas of tax and accounting.

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